Dealing with Price Issues for Your Small Business

Do you feel like you’re wearing a price tag?

Pricing is the hairiest of beasts for my clients and of course for me since we’re solopreneurs. Because I only come to the sales conversation with a prospect after first establishing the ‘know-like-trust’ through public speaking or having just gone through a complimentary session, I almost never get questioned on my price. A person is either willing to invest to grow their business or they’re not. It’s just that simple. It’s about their belief in the value of what you offer. Here are some other tips to help you get over the pricing hurdle:

Establish the value of your offering before you discuss price

The sooner price is brought up in the sales interaction, the more of a focal point it will become and the more difficult it will be to demonstrate your value. If someone insists on an immediate price—and it does happen from time to time—I never get the sale.

Focus on the outcome or results

Whenever possible, translate the benefits of your product/service into actual dollars.

This approach is extremely effective in reducing price resistance. For example, if a company will save thousands of dollars in operating costs after implementing your solution then a purchase price of several hundred dollars seems worthwhile.

 Don’t drop your price

It amazes me how often sales people quickly drop their price at the first sign of price resistance. If price was the only reason people bought goods and services, high-end boutiques and companies that sell premium products would not exist. However, if you fail to demonstrate the value of your product or service, price will become the primary area of focus simply by default.

via Dealing with Price Issues for Your Small Business.

Remember that you can price yourself 10x as high as your nearest competitor as long as you are 10x as effective in communicating your value and can deliver 10x as much value to your clients. Think about why some coaches are barely scraping by while Tony Robbins charges insane amounts of money to do the same thing. It’s because the perception is that he will without a doubt change a life with his coaching. How do you deliver the same message and value in your business?

Need more chicken soup for your biz? Follow me on Twitter, friend me on Facebook or connect with me on LinkedIn –and let’s talk!

When a client dumps you: Hard lessons for a small business when a client fires them

During the 7 years of my coaching practice, I’ve been lucky that I’ve only lost a couple of clients. Each time that it happens I’m reminded again of the lessons that I’ve learned and I hone my skills and services to be that much better. If you want to grow your small business, do yourself a favour and learn from my mistakes. Here they are:

  1. When the client isn’t getting results, no matter how good your relationship seems, the client might resent you.
  2. When the client is frozen in inaction, stop all attempts to move forward until the core of the problem is resolved. Refer to therapy if problem is rooted in the past.
  3. Unless a milestone of success happens, do not ask a client for a referral.
  4. Do not become friends with a client. Some can handle it, some can’t. You may not be able to handle some.
  5. Specify right up front and in writing, the scope and method of what your service entails and doesn’t entail. Leave no doubts.
  6. Learn to spot a mismatch of styles in the initial meeting before the contract is signed.
  7. If there’s an issue that comes up that is strange or different upfront—let them go with no further questions. The situation will only get worse for both of you if you don’t.
  8. Re-evaluate the relationship every other month and talk about what’s working well and what isn’t for both of you so that you can course correct. Avoid nasty surprises at the end of the contract.
  9. Do not go above and beyond the call of duty unless the client is progressing well. If they’re stuck and you’re carrying them, they won’t thank you for it in the end.
  10. Don’t soft-soap or coddle clients who aren’t getting it done. Tell it like it is right up front that they’re letting things slide. If you let them keep sliding, they will hold you responsible later.

When a client who wasn’t happy leaves, it makes room for you to get a new one who will be a much better fit for you and you will continue to experience the joys of growing both your small businesses together.  

Need more chicken soup for your biz? Follow me on Twitter, friend me on Facebook or connect with me on LinkedIn –and let’s talk!